Explain the Grey Market to me
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  1. #1
    Member buddyg's Avatar
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    Explain the Grey Market to me

    I did a search but did not find my exact question.

    How does the Grey Market get new watches? There is a huge price difference between an AD and Grey for new watches. Obviously used is easy to understand.

    Thanks

  2. #2
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    Re: Explain the Grey Market to me

    There're usually "back-doored" or buy old stock, resold, and the watches are classified used, hence - no factory
    warranty.
    Last edited by Watchbreath; December 26th, 2012 at 22:30.

  3. #3
    Member buddyg's Avatar
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    Re: Explain the Grey Market to me

    Quote Originally Posted by Watchbreath View Post
    There're usually "back-door" or buy old stock, resell, and the watches are classified used, hence - no factory
    warranty.
    So they buy from the factory or AD or both?
    What does "back-door" mean?

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  5. #4
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    Re: Explain the Grey Market to me

    AD, have an "arrangement"
    Quote Originally Posted by buddyg View Post
    So they buy from the factory or AD or both?
    What does "back-door" mean?
    GTR83 likes this.

  6. #5
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    Re: Explain the Grey Market to me

    +1

    Also sometimes new old stock originally intended for a different regional market.

    Grey market - Wikipedia, the free encyclopedia

  7. #6
    Member buddyg's Avatar
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    Re: Explain the Grey Market to me

    How much markup does an AD typically have in a watch? 10, 20, 30 percent?

  8. #7
    Member GETS's Avatar
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    Re: Explain the Grey Market to me

    Quote Originally Posted by Watchbreath View Post
    AD, have an "arrangement"
    Oh Sensei. Oh mystical and acerbic Watchbreath!

    We know that you only post one sentence replies but please explain more?
    lvt, Chronopolis and persco like this.
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  9. #8
    Moderator Public Forum John MS's Avatar
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    Re: Explain the Grey Market to me

    Quote Originally Posted by buddyg View Post
    So they buy from the factory or AD or both?
    What does "back-door" mean?
    Yes. And there is so much grey market merchandise available at numerous shops large and small that manufacturers are obviously using the grey market as nothing more than another channel for selling new unwarranted items. Many buyers are motivated more by the thought of getting a very low price than after sale service and the grey market serves those customers.
    Last edited by John MS; December 26th, 2012 at 22:55.

  10. #9
    Member ZachB's Avatar
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    Re: Explain the Grey Market to me

    Let me try to explain...

    You open a retail outlet and you would like to carry brand X. In order to carry brand X, brand X requires that you initially buy $250,000 of inventory through them. They also require you to buy certain amounts of various models that you may or may not want. You may also be required to purchase a certain amount every year to continue being an authorized dealer. The problem is, you the retailer may not have $250k to spend and you may not want all of those models. That's where the grey market comes in. You the authorized dealer sell off your extra inventory to the grey market dealers for close to cost, they then make them available to the public at a discounted price.
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  11. #10
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    Re: Explain the Grey Market to me

    Quote Originally Posted by John MS View Post
    Yes. And there is so much grey market merchandise available at numerous shops large and small that manufacturers are obviously using the grey market as nothing more than another channel for selling new unwarranted items. Many buyers are motivated more by the thought of getting a very low price than after sale service and the grey market serves those customers.
    Are you saying that manufacturers deliberately sell into some grey dealerships at cheaper prices in order to avoid warranty liabilities? Am I understanding you correctly?
    Current Collection
    Patek Philippe – World Time Chronograph – 5930G-001
    Patek Philippe – Annual Calendar 5135G
    Patek Philippe – Aquanaut – 5167a-001
    Patek Philippe – Calatrava – 5196P
    A Lange & Sohne – Datograph
    Breguet – La Tradition - 7037BB/11/9V6
    Breguet – Type XXI Transatlantique Flyback
    Audemars Piguet – Royal Oak -15300
    Jaeger LeCoultre – Grande Reverso Ultra Thin Duoface
    Breitling – Navitimer 46
    Breitling – Transocean Chronograph B01 Ltd Edition
    Rolex – Submariner No Date - 114060
    Zenith – El Primero – 30.0240.410
    Panerai – Luminor PAM 241
    IWC – Portuguese Chronograph
    Omega – Speedmaster (Sapphire Sandwich)
    Omega – Seamaster Aqua Terra GMT 43
    Omega – Seamaster Planet Ocean
    Longines – Column Wheel Single Push-Piece Chronograph 180th Anniversary Ltd Edition
    Longines – Master Retrograde Seconds
    Tudor – Heritage Black Bay 79220R Leather
    Meistersinger – Salthora Jumping Hours - SH908
    Tag Heuer – Monaco Calibre 11
    Tag Heuer – Aquaracer Two Tone Quartz

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